Super Rich from Winning a Lottery

Chapter 410 270: Windfall Profits

Under Yi Anguo's Anjing Group, there are many chain stores, such as Anjing Cinemas, Anjing Supermarket, Anguo Hotel, Anjing Convenience Store, Anjing Coffee and Milk Tea Shop, Anguo Furniture Brand Store, Huaxing Mobile Flagship Experience Store, Anguo Real Estate Agency, and others, including Third Sister's Pearl Fruit Shop and Guohui Fresh Supermarket.

Guohui Fresh Supermarket competes with Anjing Supermarket, Anjing's offline physical store of the online supermarket, Anjing Convenience Stores, and Anjing's offline convenience stores of the online supermarket, which is inevitable.

Even Third Sister's Pearl Fruit Shop inevitably competes with Guohui Fresh Supermarket from time to time, which is normal and unavoidable.

Every commercial center built will certainly be prioritized for use by these chain stores. The remaining good locations will be set aside to be rented out by property companies, and only less favorable spots will be sold directly.

In fact, there aren't really any less favorable shops now. After all, the era of mobile internet hasn't truly arrived yet, and there are not as many online shoppers as there will be in a few years when the era of online shopping truly arrives.

So at this time, physical stores are still doing well, and the streets are bustling with activity.

A few more years down the line, six or seven years from now, people will have grown accustomed to staying home for takeout and shopping online via their phones. Many people will prefer staying at home, unwilling to go out, resulting in streets becoming quite deserted, and a large number of physical stores beginning to close, leaving many properties vacant and unrentable.

Many people who previously spent a fortune to buy prime retail spaces, thinking they could ensure prosperity for three generations, have instead found themselves stuck with something they can't rent out or sell.

It's now only 2010, and in many places, it's still hard to come by a shop, and the price of retail spaces is much higher than that of residential properties. Commercial streets, pedestrian streets, and shopping centers are still bustling and overcrowded with people everywhere.

The major supermarkets are also crowded, with long lines of customers waiting to check out at the cash registers.

Seven or eight years later, things start to decline year by year. There are skyscrapers everywhere, yet the streets aren't crowded, and all you see are the constant flow of vehicles on the roads.

Now, major supermarkets have at least 100 cashiers, but a decade or more later, most have only a few cashiers left, partly because self-service checkout machines have replaced cashiers, and partly because many supermarkets have moved to online sales.

In addition, many large supermarkets are weeded out in brutal market competition.

Anguo Commercial Real Estate Development Company's first batch of more than twenty commercial development projects were developed and constructed following the design of urban complexes. They all have a unified name: Anjing Times Square, known as landmark buildings and commercial centers locally.

Even before the sales began, they had already garnered widespread local attention. Countless people were eagerly anticipating the early release and opening of Anjing Times Square. Many people in local commercial circles were getting ready and eager to move in sooner to start making money.

When sales officially started, the entire sales office and rental center was crowded with people coming to inquire and purchase or lease commercial spaces. The scene was unprecedentedly lively, to the point where police had to be deployed to maintain order on the site.

As these were sold at local market prices, many queued for commercial premises, paid deposits, and then resold them at a high price, earning a considerable profit from the difference.

Under the manipulation of these speculators, the prices of these commercial spaces significantly increased.

The same went for the apartment buildings, as purchasing apartments was not affected by purchase restrictions policy, so many people bought several, even dozens of units for investment and leasing, waiting for appreciation.

Many people were smart enough to think house prices would definitely continue to rise, which is why they chose to speculate in housing.

However, many big cities introduced purchase restriction policies, making it difficult to buy many units of ordinary residences.

At this time, many people turned their attention to apartment buildings, some buying dozens of units at once, using them for renting while waiting for appreciation.

Yi Anguo certainly knew house prices would appreciate, but he couldn't avoid selling them either.

However, it didn't matter. He thought it best to earn the money first since only when capital keeps circulating can it maximize profit. So it was necessary to buy whenever appropriate.

Moreover, commercial real estate also requires a large amount of funds. If one keeps developing without selling, no matter how wealthy he might be now, he wouldn't be able to withstand it, and the capital chain would eventually break.

Only by strengthening land reserves like now, acquiring land at low prices nationwide, and continuously developing new projects to sell and recycle funds can the company continue to grow and expand.

Think of Hengda Group and many domestic real estate development companies that have used this method to continually expand their businesses.

As long as house prices keep rising, there typically wouldn't be any problems.

This model has a significant downside; whenever house prices suddenly plummet, it spells the end for this type of real estate development company.

For instance, two years ago in 2008, many real estate development companies went bankrupt and folded, mainly due to the housing price crash, leading to a capital chain rupture. Coupled with banks running out of money and tightening credit, not only stopping loans but also urging repayment of previously issued loans, many companies couldn't hold on and ultimately went bankrupt.